Alphatec Spine Completes Asset Acquisition of Irvine, CA-Based Phygen LLC
CARLSBAD, Calif., Nov. 7, 2012 (GLOBE NEWSWIRE) -- Alphatec Holdings, Inc. (ATEC), the parent company of Alphatec Spine, Inc., announced today that it has closed its acquisition of certain assets of Phygen LLC.
"We are very pleased and excited to close this important transaction and bring these two companies together. It is truly a synergistic fit and a transformational event for both organizations," said Les Cross, Chairman and Chief Executive Officer of Alphatec Spine. "As I promised when I became CEO earlier this year, Alphatec Spine is focused on becoming more market-driven and customer-focused in order to strengthen sales and profitability. We are taking steps to launch new products, enhance the productivity of our sales force and distribution network, and target more surgeon-customers. Simultaneously, we are supporting these activities with operational improvements designed to lower our cost structure.
"With this transaction, we believe we have significantly strengthened our capabilities to succeed with our strategy. Phygen should bring us an enhanced product development process driven by their Scientific Advisory Board and a broad portfolio of complementary products. We are eager to leverage the strengths of both companies to deliver greater value to spine surgeons in 2013. In addition, I am pleased to welcome Tom Gardner and his experienced leadership team to Alphatec."
Tom Gardner, Chief Executive Officer of Phygen, said "Phygen has over 100 active spine surgeons, many of whom have been directly involved in developing new innovations and product enhancements that have enabled Phygen to establish a broad and unique line of spinal implant solutions. This transaction will provide Alphatec with access to these innovations. In addition, I feel as though our engineering capabilities complement Alphatec's, which should accelerate the cycle of innovation. At the same time, Phygen's member-surgeons will have access to Alphatec's dynamic product line.
"A prerequisite for success in today's healthcare market is fast and cost-effective product innovation. When the respective management teams discussed the benefits of this transaction, we focused on the potential upside of combining the innovation capabilities of the Phygen surgeons with the engineering, manufacturing and distribution proficiencies of Alphatec. This promises to be a very exciting time for the shareholders of both companies."
A description of the material terms of the transaction were set forth in a Form 8-K that was filed with the SEC on October 25, 2012.
About Alphatec Spine
Alphatec Spine, Inc. is a wholly owned subsidiary of Alphatec Holdings, Inc.. Alphatec Spine is a medical device company that designs, develops, manufactures and markets products for the surgical treatment of spine disorders, primarily focused on the aging spine. The Company's mission is to combine world-class customer service with innovative, surgeon-driven products that will help improve the aging patient's quality of life. The Company is poised to achieve its goal through new solutions for patients with osteoporosis, stenosis and other aging spine deformities, improved minimally invasive products and integrated biologics solutions. In addition to its U.S. operations, the Company also markets its products in over 50 international markets through its affiliate, Scient'x S.A.S., via a direct sales force in France, Italy and the United Kingdom and via independent distributors in the rest of Europe, the Middle East and Africa. In Latin America, the Company conducts its business through its subsidiary, Cibramed Produtos Medicos. In Japan, the Company markets its products through its subsidiary, Alphatec Pacific, Inc. In the rest of Asia and Australia, the Company sells its and Scient'x's products through its and Scient'x's distributors.
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Forward Looking Statements
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainty. Such statements are based on management's current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Alphatec Spine cautions investors that there can be no assurance that actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors. Forward looking statements include references to Alphatec Spine's strategies to strengthen sales and earnings; Phygen's financial contributions to Alphatec's financial results in 2013; Phygen synergies with product development and engineering that shorten the product innovation cycle; and reductions in the Company's manufacturing costs and operating expenses from operational improvements. The words "believe," "will," "should," "expect," "intend," "estimate" and "anticipate," variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. The important factors that could cause actual operating results to differ significantly from those expressed or implied by such forward-looking statements include, but are not limited to; the materialization of the anticipated benefits from the Phygen transaction; the uncertainty of success in developing new products or products currently in Alphatec Spine's pipeline; failure to achieve acceptance of Alphatec Spine's products by the surgeon community, including the Phygen surgeons discussed in this press release; failure to successfully implement streamlining activities to create anticipated savings; failure to successfully begin in-house manufacturing of certain products; failure to obtain FDA clearance or approval for new products, or unexpected or prolonged delays in the process; Alphatec Spine's ability to develop and expand its U.S. and/or global revenues; continuation of favorable third party payor reimbursement for procedures performed using Alphatec Spine's products; unanticipated expenses or liabilities or other adverse events affecting cash flow or Alphatec Spine's ability to successfully control its costs or achieve profitability; uncertainty of additional funding; Alphatec Spine's ability to compete with other competing products and with emerging new technologies; product liability exposure; failure to meet all financial obligations in the Cross Medical Settlement or its credit agreement; patent infringement claims and claims related to Alphatec Spine's intellectual property. Please refer to the risks detailed from time to time in Alphatec Spine's SEC reports, including its Annual Report Form 10-K for the year ended December 31, 2011, filed on March 5, 2012 with the Securities and Exchange Commission, as well as other filings on Form 10-Q and periodic filings on Form 8-K. Alphatec Spine disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law.
CONTACT: Investor/Media Contact: Mark Francois Senior Director, Investor Relations Alphatec Spine, Inc. (760) 494-6610 mfrancois@AlphatecSpine.com